Programmatic Advertising 101: An Introduction to the Industry Jargon

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What is Programmatic?

The word Programmatic has been around for years but it was only recently when the world of marketing embraced it. The boom of big data and artificial intelligence helped programmatic make its way to the enterprise’s marketing plan. For instance, programmatic comprise 36% of the digital marketing spend in APAC and is seeing growth year on year.

When people think about programmatic, they usually think it has something to do with automating the buying process, thus removing human effort in buying ads. Although not inaccurate, there is more to programmatic than automation. This is what makes this technology amazing. Programmatic is shifting the mindset of advertisers from buying time slots, which is the concept of traditional advertising, to buying target audiences, instead.

SSP + DSP + Ad Exchange = Programmatic Trading

Although it seems like we’re speaking in codes, the above formula actually shows the important players in a programmatic ecosystem. The jargon can get a little overwhelming at times, so with this article, we tried to break it all down so you can better understand each.

Demand Side Platform (DSP)

A DSP is a platform used by ad agencies and brands to buy ads and other media. This technology connects the buyer and the ad exchange so that the buyer can see all their programmatic inventory in one interface.

Supply Side Platform (SSP)

An SSP allows online publishers (app and digital media owners) to manage their own space inventory. In simple terms, the supply side refers to the inventory of advertising space together with the price the publisher wants to sell it for.

Ad Exchange

Connecting both DSP and SSP is the ad exchange. An Ad Exchange auctions ad inventory made available by the SSP. The inventory will be auctioned once the inventory available matches the criteria set by DSPs. Criteria may include audience characteristics, location, and other purchase options. AlgoriX is an AI-powered mobile exchange connecting the best publishers and DSPs in the mobile industry.

Real-Time Bidding (RTB)

RTB is a type of programmatic technology that automates the purchase and placement of ads in real-time. As mentioned, inventories are auctioned based on the buyer’s criteria. The process may sound long and complicated, but these decisions happen in a millisecond.

So Why Programmatic?

Programmatic removes the guessing game in advertising. Marketers no longer need to drop a mass message hoping someone would relate. Today’s advertising is all about personalization by using triggers that are gathered from the customer’s online behavior. With programmatic, ad quality has never been better than before.

AlgoriX uses RTB to help DSPs reach millions of app users supplied by various high-quality SSPs in the platform. AlgoriX’s supply optimization is powered by Artificial Intelligence (AI) and allows you to target your desired customer profile precisely. To learn more about how Algorix can help your brand, visit our website.

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Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.